Used-car prices rise as sales slump's aftershocks arrive

ST. LOUIS — A new Toyota Prius these days starts at around $22,000, which might prompt the cost-conscious buyer in this fragile economy to scout around for a used version.

But even a 2-year-old model of the hybrid fuel miser costs almost as much, at about $20,800, according to National Automobile Dealers Association.

And don’t expect dealers to come down much on the price of either one.

Blame spiking used-car prices on a shortage of late-model examples in the aftermath of the Great Recession when few could afford to buy new. The supply of new cars, meanwhile, is tightening as the Japanese earthquake puts crimps in the supply chain, shutting off manufacturing of many models. High gasoline prices, meanwhile, are making buyers hungry for little gas-sippers and hybrids.

The dealers association reports that prices on late-model used cars sold to dealers at wholesale auctions jumped 4 percent in March alone, and they’re up 12 percent over the past year.

Consumers can’t escape the consequences.

“We have to pass it on,” said Denny Marquitz of Marquitz Buick Cadillac GMC in Troy, Mo.

Car shoppers are noticing to their chagrin.

“On the big car lots, they seem to be asking a lot more than the Kelley Blue Book value,” said Brad Clark of O’Fallon, Mo., who wants to buy a used car for his 17-year-old son.

The price increases are highest among fuel-efficient cars. Prices for these type of cars — which include models such as the Honda Civic, Toyota Corolla and Ford Focus — jumped 11 percent at wholesale auctions last month alone, according to NADA.

The group expects prices to keep rising for months to come.

Used-car prices were rising even before the quake and the recent spike in gasoline prices. A sharp drop in new car sales two years ago is producing a shortage of late-model used cars on the market today, analysts say.

American vehicle sales plunged to 10.4 million as the recession hit bottom in 2009, far below the 16 million-plus level in the years before the slump. They’re now selling at an annualized rate of 13 million.